South Africa-based broker Alexander Forbes has noted that recent moves by South Africa's President Zuma to encourage the creation of a free trade zone covering Southern and Eastern Africa "could herald the establishment of a regional insurance market as is currently the case in Francophone Africa". Alexander Forbes said that Africa had more than 50 countries with different regulatory regimes, which "present a challenge for most investors when seeking to insure their investments across a range of countries and legislative regimes". Michael Duncan, Executive Leader of Alexander Forbes' Global Practice, said that President Zuma's call for a free trade zone would, he hoped, "lead to the adoption of a regional approach to the way in which insurance is regulated". He noted that most individual countries in the region were seeking to protect their local insurance industry and the people employed by it. He said that, although that principle was "laudable", "the differing approaches adopted by regulators have resulted in overprotected regulatory environments, acting to the detriment of foreign investors". Mr Duncan noted that the adoption of the CIMA code in Francophone Africa meant that multinationals were required to insure 25% of their risks locally, but could then place the balance under global programmes. If this policy were adopted throughout Southern and Eastern Africa, said Mr Duncan, "this would both support local insurance markets while also enabling multinationals to access their global programmes".

European insurers' exposure to Greek Irish and Portuguese sovereign debt is "manageable", claims Fitch in its latest report, "GIP Exposure Manageable, But Broader Dislocation of Financial Markets is Primary Concern". The rating agency said that the situation was unlikely to have significant rating implications, but that its major concern was a disorderly sovereign debt restructuring, or a debt rollover that dislocated broader European markets. This, said Fitch, could lead to significantly wider credit spreads and "sharp equity price declines". Harish Gohil, managing director in the Fitch EMEA Insurance team, said that "the direct exposure of the European insurance sector to Greek sovereign risk is relatively low and, in most cases, is unlikely to have significant ratings implications in the event of some kind of Greek restructuring or rollover event". Fitch noted that companies previously identified as having the most significant exposure to Greece in relation to their capital base had either reduced significantly or completely eliminated that exposure in the past year. Unless there was significant contagion, Fitch thinks that "most European insurance groups should be able to absorb the immediate credit, market and liquidity risks with only minor, if any, negative ratings actions".

Former Marsh executives William Gilman and Edward McNenney have amended a lawsuit against Marsh & McLennan Cos, accusing the New York-based broker/consultant of colluding with then-New York attorney general Eliot Spitzer in 2004 and 2005 to serve up the executives for prosecution as part of a settlement of an investigation into bid-rigging. Mr Spitzer initially accused Marsh in October 2004 of masterminding the rigging of bids for large commercial p/c accounts in collusion with big carriers, and Marsh reached an agreement in early 2005 to pay $850m in restitution to settle the investigation. Marsh also sacked Messrs Gilman and McNenney, as well as chief executive Jeffrey Greenberg and other executives. "In return for offering up Messrs Gilman and McNenney, the New York attorney general agreed not to prosecute Marsh itself, but instead would target Messrs Gilman and McNenney for prosecution", the amended lawsuit says in papers filed last week. Mr Spitzer "desired to achieve a large public settlement with Marsh, which he would trumpet with the press" to bolster his run for governor in 2006, the complaint says. Later in 2005, Messrs Gilman and McNenney were indicted for their alleged roles in the bid-rigging scheme and were found guilty on a charge of restraining trade. The convictions were subsequently reversed, and earlier this year current AG Eric Schneiderman tossed out indictments against them.

The insurance situation for the public authorities in the New Zealand is looking increasingly serious, with Civic Assurance unable to offer cover, while government back-up protection would apply to underground infrastructure, but not to above-ground properties. Finance Minister Bill English said today that if there were any further damage to "essential infrastructure" in Christchurch and Waimakariri districts, then the burden would be shared between taxpayers nationally and ratepayers locally. But Radio New Zealand reported the minister's office as stating this did not include above-ground assets such as the AMI Stadium, libraries and swimming pools. If there was damage to such structures as a result of a future event, cover would be considered on a case-by-case basis.